| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1895.5B | ¥1770.6B | +7.1% |
| Operating Income / Operating Profit | ¥287.7B | ¥262.4B | +9.7% |
| Ordinary Income (Profit Before Tax) | ¥254.2B | ¥230.1B | +10.5% |
| Net Income / Net Profit | ¥166.2B | ¥154.1B | +7.9% |
| ROE | 20.1% | 23.0% | - |
For the fiscal year ended March 2026, the Company's consolidated results were Revenue ¥1895.5B (YoY +¥124.9B +7.1%), Operating Income ¥287.7B (YoY +¥25.3B +9.7%), Ordinary Income (Profit Before Tax) ¥254.2B (YoY +¥24.1B +10.5%), and Net Income attributable to owners of the parent ¥166.2B (YoY +¥12.2B +7.9%). Operating margin improved 0.4pt to 15.2% (prior year 14.8%) as operating profit growth outpaced revenue growth, driven by same-store growth domestically and internationally and progress in cost control. Profit growth absorbed strategic increases in SG&A while operating leverage functioned; at the ordinary income stage increased financial expenses of ¥45.4B (¥+8.6B) were partially offset by financial income ¥7.8B (¥+6.1B) and equity-method income ¥4.0B (¥+1.2B). At the net income stage, corporate taxes and others of ¥88.0B (effective tax rate 34.6%) weighed on results, but year-on-year net profit increased.
Revenue ¥1895.5B (+7.1%) breakdown: Japan segment ¥1086.9B (+6.1%), U.S. segment ¥796.6B (+9.0%), Other ¥12.0B (-18.2%). Japan benefited from robust same-store traffic and higher spend per customer; the U.S. was driven by store network expansion and local-currency sales growth; Other declined due to contraction of some overseas local subsidiaries in a small segment. Gross profit ¥397.5B (gross margin 21.0%, prior year 19.8%) improved +1.2pt in composition, with pricing measures and product-mix optimization absorbing cost increases.
Profit: Operating Income ¥287.7B (+9.7%) was led by a large increase in the Japan segment. Japan recorded Operating Income ¥228.1B (+34.1%, margin 21.0%), maintaining high profitability with gross margin improvement and operating leverage outweighing higher SG&A. The U.S. recorded Operating Income ¥85.8B (-25.7%, margin 10.8%), a decline driven by higher labor, rent, and utility costs despite +9.0% revenue growth. Other posted an operating loss of ¥26.2B (prior year loss ¥29.9B), narrowing the deficit. SG&A ¥102.3B (+46.7%) rose due to headcount investment and increased marketing, but exceeded revenue growth such that operating leverage remained favorable. Ordinary Income (Profit Before Tax) ¥254.2B (+10.5%) reflects increased financial expenses ¥45.4B (due to higher borrowing costs and lease-related costs) partially offset by financial income ¥7.8B (¥+6.1B, mainly FX gains and investment income) and equity-method income ¥4.0B. Net Income ¥166.2B (+7.9%) is after corporate taxes and others ¥88.0B (effective tax rate 34.6%); a reduction in impairment losses to ¥4.8B (prior year ¥20.0B) also contributed. Conclusion: revenue and profit growth.
Japan segment Operating Income ¥228.1B (+34.1%, margin 21.0%) achieved substantial profit growth due to improved same-store profitability, pricing strategy, and operational efficiency. U.S. segment Operating Income ¥85.8B (-25.7%, margin 10.8%) saw profit decline as higher labor, rent, and energy costs compressed margins despite +9.0% revenue growth. Other posted an operating loss of ¥26.2B (prior year loss ¥29.9B); losses stem from small overseas local businesses but narrowed by 12.6%. Japan accounts for approximately 79% of consolidated operating income; U.S. profitability improvement is key to boosting consolidated margins.
Profitability: ROE 22.2% considerably exceeds the company’s historical performance and industry median, aided by improved Net Profit Margin 8.8% (prior 8.7%) and Operating Margin 15.2% (prior 14.8%). Gross profit margin 21.0% improved +1.2pt YoY, absorbing cost increases through price and mix. EBITDA ¥720.5B (Operating Income ¥287.7B + Depreciation & Amortization ¥432.8B), with an EBITDA margin of 38.0%, indicates strong cash-generating ability even under IFRS16. Cash Quality: Operating Cash Flow (OCF) 604.6B is 3.64x Net Income ¥166.2B, showing excellent conversion of profit to cash (benchmark >1.0x). Accrual ratio -14.2% is favorable, indicating a cash-driven profit structure. OCF/EBITDA 0.84x (benchmark 0.9x) is slightly below benchmark; tax payments ¥110.5B, interest payments ¥43.0B, working capital and IFRS16 structural factors impacted the metric. Investment Efficiency: Total Asset Turnover 0.61x, estimated ROIC 15.9% (NOPAT / Invested Capital) is high, demonstrating efficiency on a large asset base including tangible fixed assets and right-of-use assets. Capital expenditures ¥304.7B are 70% of Depreciation & Amortization ¥432.8B, balancing growth investment and asset renewal. Financial Soundness: Equity Ratio 26.7% (prior 25.7%) improved +1.0pt, with Equity ¥826.4B (prior ¥668.8B) up ¥157.6B. D/E 2.75x (warning threshold >2.0) reflects reliance on lease liabilities ¥1,388.8B; interest-bearing debt excluding leases ¥491.2B against cash ¥549.5B yields net cash -¥58.3B (conservative). Debt/EBITDA 1.85x (including leases), 0.68x (excluding leases) indicates solid debt capacity. Interest Coverage 6.3x (EBIT / Financial Expenses) shows adequate interest-paying ability. Current Ratio 108% secures minimum short-term liquidity.
OCF ¥604.6B (YoY -5.5%): subtotal ¥754.7B less working capital changes (inventory -¥10.8B, trade payables +¥15.3B), corporate tax payments -¥110.5B, interest payments -¥43.0B, and lease payments -¥302.9B. OCF is 3.64x Net Income ¥166.2B, demonstrating superior profit-to-cash conversion. Investing CF -¥312.5B is mainly capital expenditures -¥304.7B, reflecting continued aggressive investment in store expansion and equipment renewal. Free Cash Flow ¥292.1B (OCF + Investing CF) comfortably covers dividends ¥45.9B, showing a healthy balance between growth investment and shareholder return. Financing CF -¥261.5B: borrowings executed ¥225.0B offset by long-term borrowings repayments -¥137.9B, lease repayments -¥302.9B, and dividends -¥45.9B outflows. Cash and cash equivalents increased ¥38.0B to ¥549.5B (beginning ¥511.5B), with FX translation +¥7.3B contributing. Depreciation & Amortization ¥432.8B is substantial, mainly due to amortization of right-of-use assets under IFRS16. OCF excluding Depreciation & Amortization (real OCF) ¥171.8B; CapEx ¥304.7B exceeding this is positioned as investment for future cash generation.
Operating Income ¥287.7B is the core, with non-operating items Financial Income ¥7.8B (FX gains and investment income) and Equity-Method Income ¥4.0B totaling ¥11.8B, a small 0.6% of Revenue. Other income ¥6.8B and other expenses ¥14.2B net to -¥7.4B, and impairment losses narrowed from ¥20.0B to ¥4.8B supporting operating-level results. The gap between Ordinary Income ¥254.2B and Net Income ¥166.2B is explained by corporate taxes and others of ¥88.0B (effective tax rate 34.6%). Disclosure of extraordinary items is limited; aside from impairment losses ¥4.8B there are no material one-off items, so earnings are broadly recurring. OCF materially exceeds Net Income, indicating good accrual quality. The difference between Comprehensive Income ¥196.8B and Net Income ¥166.2B is foreign currency translation differences ¥30.5B, a non-recurring item from translation of overseas operations with limited cash impact.
Company plan: Full-year Revenue ¥2190.9B (vs. actual +15.6%), Operating Income ¥330.5B (+14.9%), Net Income ¥182.6B (+9.9%), indicating expected revenue and profit growth. Based on midterm results, the plan assumes incremental revenue ¥295.4B and Operating Income ¥42.8B in the second half. Maintaining high profitability in Japan and recovery of U.S. profitability (through price pass-through, productivity improvements, and cost normalization) are key; external sensitivities include interest rates, FX (USD/JPY), labor costs, and rent trends. CapEx will continue, with new-store effects and existing-store efficiency improvements supporting plan achievement. EPS forecast 69.46円 vs. current actual 63.30円 implies 91% progress; acceleration of profit growth in H2 is necessary to meet the full-year target.
Dividend is ¥4.5円 per quarter, annual ¥18.0円, payout ratio 27.9%—a conservative level. Total dividends ¥45.9B (per CF statement) are covered 6.4x by Free Cash Flow ¥292.1B, indicating low downside risk for dividend cuts. Share buybacks are zero, so Total Return Ratio equals payout ratio 27.9%, consistent with a capital allocation policy prioritizing growth investment. DOE 6.4% reflects returns aligned with capital efficiency. Next fiscal year dividend is forecast at annual ¥4.5円 (assumed interim ¥3 and year-end ¥1.5), which versus EPS forecast ¥69.46円 implies a payout ratio of about 6.5%—very conservative (if disclosed figures are correct, continuation of ~¥18 annual dividend is also possible). Given current cash generation and net cash position, dividend sustainability is high.
U.S. segment profitability risk: Operating Income ¥85.8B (-25.7%, margin 10.8%) declined; if higher labor, rent, and utility costs persist, consolidated margins may remain diluted. If the structure of revenue growth without profit expansion persists, investment returns may fall and shareholder value may be impaired.
Leverage concentration risk: D/E 2.75x (warning threshold >2.0) and dependence on lease liabilities ¥1,388.8B create capital structure risk; in a rising-rate environment financing costs may continue to rise. Interest Coverage 6.3x indicates current resilience, but stagnant EBITDA or rapid rate hikes could pressure interest payments and profitability. Concentration of lease maturities and deterioration in renewal terms could increase cash outflows and should be monitored.
Delay in recovery of growth investments: CapEx ¥304.7B represents ~50% of annual OCF ¥604.6B; if new store ramp-up efficiency, site selection errors, or demand swings delay returns on invested capital, ROIC could decline and cash generation weaken. Additionally, OCF/EBITDA 0.84x below the 0.9x benchmark warrants monitoring of cash conversion even accounting for taxes, interest payments and IFRS16 structural effects.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| ROE | 22.2% | 10.1% (2.2%–17.8%) | +12.1pt |
| Operating Margin | 15.2% | 8.1% (3.6%–16.0%) | +7.1pt |
| Net Profit Margin | 8.8% | 5.8% (1.2%–11.6%) | +2.9pt |
Profitability metrics all substantially exceed industry medians; ROE, Operating Margin and Net Profit Margin rank in the upper range.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 7.1% | 10.1% (1.7%–20.2%) | -3.0pt |
Revenue growth is slightly below the industry median but indicates a steady growth strategy balanced with high profitability.
※Source: Company compilation
The regional gap—Japan segment margin 21.0% vs. U.S. 10.8%—suggests that improving U.S. profitability is the primary driver for raising consolidated margins. Progress on passing through higher labor and rent costs and effectiveness of productivity measures will be key to achieving next fiscal year’s plan (Operating Income +14.9%); quarterly U.S. margin trends should be closely monitored.
Strong cash generation OCF ¥604.6B and FCF ¥292.1B demonstrates the ability to support both dividends (¥45.9B) and CapEx (¥304.7B) while maintaining net cash. However, OCF/EBITDA 0.84x below benchmark and D/E 2.75x above warning levels are risk aspects; ongoing assessment of cash-flow resilience under rising rates or deteriorating lease terms is necessary.
This report is an AI-generated financial analysis document based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company from public financial statements. Investment decisions are your own responsibility; please consult a professional advisor as needed.